CANSLIM & Growth
Non-Linear Profit Growth (Operating Leverage) is a CANSLIM & Growth screen. It checks every NSE-listed stock against 2 conditions computed from nightly data, after excluding heavily pledged promoters and very small market caps. This page explains the rule, each figure and its source. It lists no stocks and is not advice.
Revenue growth is visible to every analyst who covers a sector. What the market frequently undervalues is the rate at which incremental revenue drops to the bottom line — operating leverage. A business with high fixed costs and growing revenue will, at some inflection point, begin converting a disproportionate fraction of each rupee of new revenue into profit. This non-linearity is the mechanical engine behind many of the market's biggest multi-year compounders. The screener does not look for high margins in isolation (which may simply reflect a mature oligopoly with no growth) nor high revenue growth in isolation (which may reflect a volume business with structurally thin margins). It looks for the combination: revenue growing meaningfully AND profit growing materially faster — the ratio of PAT CAGR to revenue CAGR being the operative signal. Businesses passing this screen are typically crossing from sub-scale to at-scale, which means the leverage effect will continue for several years even without further revenue acceleration, creating a durable compounding runway that a pure revenue screen or a pure margin screen would miss.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Revenue Growth
Profit Leverage
Hard excludes
Ranked by PAT CAGR (3Y), highest first.
Revenue CAGR 3-Year %
(revenue_latest_annual / revenue_3yr_prior_annual) ^ (1/3) - 1, expressed as a percentage. Uses annual income statement revenue figures from FinEdge (statement_code=pl, period=annual). Latest annual is the most recently completed fiscal year.
High is better
PAT CAGR 3-Year %
(profitOrLossAttributableToOwners_latest_annual / profitOrLossAttributableToOwners_3yr_prior_annual) ^ (1/3) - 1, expressed as a percentage. Uses profitOrLossAttributableToOwners (annual PAT field) from FinEdge pl statement. Computed only when both the base year and latest year PAT are positive; otherwise flagged as not computable.
High is better
Profit-to-Revenue Growth Ratio
pat_cagr_3yr_pct / revenue_cagr_3yr_pct. Both CAGRs expressed as decimals (e.g. 0.35 / 0.15 = 2.33). Computed only when revenue_cagr_3yr_pct > 0; flagged as not computable for shrinking-revenue companies. A ratio of 1.0 means profit and revenue grow at the same rate (no leverage). Above 1.5 is the soft threshold for this screener; above 2.0 is exceptional.
High is better
Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.
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We have not measured this screen yet, so there is no record to explain.
Not yet testable — 5 of 6 points needed to chart a rolling information coefficient.
This is a historical, statistical measurement produced by FINOME TECHNOLOGIES PVT LTD's research harness on past data. It is not a prediction, and past results do not indicate future results. The universe is today's Nifty 500 constituents, so the sample is affected by survivorship bias. It describes how a screen's selections behaved in the past and does not constitute investment advice or a recommendation.
Rule version 1.0.0